Intermediate Accounting
1st Edition
ISBN: 9780132162302
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Chapter 12, Problem 12.4BE
To determine
To obtain: Journal entries to record the impairment loss in the books of account.
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Muskoko Inc. purchased a property for $1.800,000 in 2022. The carrying value of property was $1,500,000 when it was required to be tested for impairment at
December 31, 2026. The fair value at December 31, 2026 is $1,250,000 and the present value of future cash flows from the production facility was calculated as
S1.056.000 at December 31, 2026. What is the total impairment of the production facility. if any?
Answers A-E
A impairment gain of $ 5S0.000
B Impairment loss of $ 250.000
No impairment gain or loss
D Impairmenit gain of $300.000
E mpairment loss of $ 444,000
On December 31, 2022, Belt Enterprises must measure its impairment loss for plant and equipment. Belt has determined that the broadcast license is not impaired. The projected future undiscounted cash flows, projected future discounted
cash flows, and fair values of the plant and equipment are listed below:
EEE (Click the icon to view the cash flows and fair values.)
Determine the impairment loss and the revised annual depreciation expense. Prepare any necessary journal entries to record the impairment.
Begin by computing the impairment loss for the plant and equipment. (Use a minus sign or parentheses for any loss amounts.)
Plant and
Equipment
Less:
Impairment Loss
Next, prepare the journal entry necessary to record the impairment. (Record debits first, then credits. Exclude explanations from any jo
December 31, 2022
Account
Determine the revised annual depreciation expense.
The annual depreciation expense is
Data table
Cost
Less: Accumulated Depreciation/Amortization
Carrying value…
On December 31, 2022, Delater Enterprises must measure its impairment loss for plant and equipment. Delater has determined that the broadcast license is not impaired. The projected future undiscounted cash flows, projected future discounted
cash flows, and fair values of the plant and equipment are listed below:
(Click the icon to view the cash flows and fair values.)
Determine the impairment loss and the revised annual depreciation expense. Prepare any necessary journal entries to record the impairment.
Begin by computing the impairment loss for the plant and equipment. (Use a minus sign or par
Plant and
Equipment
Carrying value
Less: Fair value
Impairment Loss
Next, prepare the journal entry necessary to record the impairment. (Record debits first, then c
December 31, 2022
2,145,000
915,000
$ (2,145,000)
1,230,000
$ (915,000)
Account
Accumulated Depreciation Plant and Equipment
Impairment Loss on Plant and Equipment
Plant and Equipment
Determine the revised annual depreciation…
Chapter 12 Solutions
Intermediate Accounting
Ch. 12 - Prob. 12.1QCh. 12 - Can firms group all property, plant, and equipment...Ch. 12 - Prob. 12.3QCh. 12 - Prob. 12.4QCh. 12 - Do firms follow the same steps for impairment...Ch. 12 - Prob. 12.6QCh. 12 - Prob. 12.7QCh. 12 - Prob. 12.8QCh. 12 - Under IFRS, if a firm recovers an impairment loss...Ch. 12 - Under IFRS, when do firms test plant assets and...
Ch. 12 - Prob. 12.11QCh. 12 - Prob. 12.12QCh. 12 - Prob. 12.1MCCh. 12 - Prob. 12.2MCCh. 12 - Prob. 12.3MCCh. 12 - Prob. 12.4MCCh. 12 - Prob. 12.5MCCh. 12 - Prob. 12.6MCCh. 12 - Prob. 12.1BECh. 12 - Prob. 12.2BECh. 12 - Prob. 12.3BECh. 12 - Prob. 12.4BECh. 12 - Indefinite-Life Intangible Asset Impairment....Ch. 12 - Prob. 12.6BECh. 12 - Prob. 12.7BECh. 12 - Prob. 12.8BECh. 12 - Prob. 12.9BECh. 12 - Prob. 12.10BECh. 12 - Impairment Reversal. IFRS. Perlu Products an IFRS...Ch. 12 - Prob. 12.12BECh. 12 - Prob. 12.13BECh. 12 - Prob. 12.14BECh. 12 - Prob. 12.15BECh. 12 - Prob. 12.16BECh. 12 - Prob. 12.17BECh. 12 - Prob. 12.18BECh. 12 - Prob. 12.19BECh. 12 - Prob. 12.20BECh. 12 - Prob. 12.21BECh. 12 - Prob. 12.22BECh. 12 - Prob. 12.23BECh. 12 - Tangible Asset Impairment. Henne Optical...Ch. 12 - Tangible Asset Impairment Loss. Use the same...Ch. 12 - Prob. 12.3ECh. 12 - Prob. 12.4ECh. 12 - Prob. 12.5ECh. 12 - Tangible Asset Impairment Loss, IFRS. Use the same...Ch. 12 - Prob. 12.7ECh. 12 - Prob. 12.8ECh. 12 - Prob. 12.9ECh. 12 - Assets Held for Disposal. Hattie Corporation...Ch. 12 - Prob. 12.11ECh. 12 - Asset Revaluation, Downwards, IFRS. Lousa Company...Ch. 12 - Tangible Asset Impairment. Chrispian Cookies, Inc....Ch. 12 - Prob. 12.2PCh. 12 - Tangible Asset Impairment. Using the same...Ch. 12 - Prob. 12.4PCh. 12 - Goodwill Impairment, Tangible Fixed Assets, and...Ch. 12 - Tangible Asset Impairment, Potential Reversal,...Ch. 12 - Prob. 12.7PCh. 12 - Prob. 12.8PCh. 12 - Prob. 12.9PCh. 12 - Comprehensive Asset Revaluation Problem (Initial...Ch. 12 - Prob. 12.11PCh. 12 - Judgment Case 1: Impairments of PPE under IFRS...Ch. 12 - Prob. 2JCCh. 12 - Prob. 3JCCh. 12 - Surfing the Standards Case 1: Impairments of PPE...Ch. 12 - Prob. 2SSCCh. 12 - Financial Statement Analysis Case 1: Long-Lived...Ch. 12 - Prob. 1BCCCh. 12 - Basis for Conclusions Case 2: Intangible Assets ...Ch. 12 - Basis for Conclusions Case 3: Goodwill Impairment...
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Asset impairment explained; Author: The Finance Storyteller;https://www.youtube.com/watch?v=lWMDdtHF4ZU;License: Standard Youtube License